Company Cites Currency Swings, Lower Demand for Compacts

By Edward A. Sanchez

Truck Trend, April 02, 2014

Russia may be in the headlines lately for its dubiously democratic attempt to annex Crimea, but the country's saber-rattling is also shattering the confidence of currency traders in its monetary unit, the ruble. Russian customers are also showing a growing preference for SUVs, and less demand for compact models. The convergence of these factors has prompted Ford to lay off a total of 950 workers at its two joint-venture production facilities in Russia; one in St. Petersburg, and the other in Tatarstan, Bloomberg reports.

Of the two, the harder hit is the St. Petersburg facility, which builds the Ford Focus compact and Mondeo (global Fusion) cars. That plant will cut 700 jobs as it discontinues a work shift in June. The plant in Elabuga, Tatarstan, which builds the EcoSport, Edge, and Explorer SUVs, will only cut 250 temporary workers, as it builds higher-demand sport-utility models that are gaining favor with Russian car buyers.

American cars aren't American anymore. No matter what company. I'll stick to my classics. My 78 monte was built in Baltimore. That GM plant closed up years ago sadly. They built the el camino there too.